Dear Mr Onyura
ASX AWARE QUERY
We refer to the aware query received from the ASX on 28 May 2015 in relation to the Company’s
announcement entitled “$4 million to fund initial development of the Isabel Nickel Project” lodged
with the ASX Market Announcements Platform and released at 10.06am on 22 May 2015
(‘Announcement’), and respond to the specific questions asked:
- Does the Company consider the information contained in the Announcement to be information
that a reasonable person would expect to have a material effect on the price or value of its
securities?
Yes.
- If the answer to question 1 is “no” please advise the basis for that view.
The answer to question 1 is yes—therefore, question 2 is not applicable.
- If the answer to question 1 is “yes”, when did the Company first become aware of the
information?
As the Company’s activities involve mineral exploration, the Company will not generate revenue
until mining commences and is therefore reliant on capital raising or debt instruments for its
ongoing funding. The Company is therefore frequently canvassing opportunities for funding,
which occur as part of the Company’s ordinary course of business. Investor relations activities are
conducted using publicly released material and information. More detailed discussions regarding
any capital raisings are conducted under obligations of strict confidentiality.
Any information in relation to such capital raising or debt funding enquiries and engagement with
potential investors represents an incomplete proposal or negotiation and accordingly, the Board
of the Company considers that a reasonable person would not expect information in relation to
these ongoing activities to require disclosure to the market pursuant to Listing Rule 3.1.
When the Company’s engagement with potential investors had progressed beyond merely
canvassing generally for investments or funding to a point where the Company determined that a
reasonable person would expect such activities to have a material effect on the price or value of
Axiom’s securities, the Company made an announcement to the market.
This announcement, made on 1 May 2015, stated that the Company was in negotiations with
project financiers regarding funding in relation to the Company’s world class Isabel Nickel Project
and that the Company was considering several funding proposals and further that the Company
intended to make an announcement to the market on the finalisation of any material contracts
and agreements.
The Company then reiterated this position on 7 May 2015 in its response to the ASX’s Appendix
5B Query, by referring to the 1 May 2015 announcement and noting that the Company was
considering several funding proposals, continued to ensure capital is sourced and deployed
effectively and that a further announcement to the market would be made when any material
contracts and agreements had been finalised.
Discussions with potential investors continued after 1 May 2015 and on 20 May 2015 until the
Company requested a trading halt that would allow the Company to finalise the terms of
additional funding for the Company and to allow the Company to make a more definitive
announcement to the market about the concluded transactions with the relevant investors. That
announcement was then released on 22 May 2015.
- If the answer to question 1 is “yes” and the Company first became aware of the information
before the relevant date, did the Company make any announcement prior to the relevant date
which disclosed the information?
As detailed in the Company’s response to question 3 above, the Company made announcements
regarding negotiations with potential funders on 1 May 2015 and 7 May 2015.
- Please confirm that the Company is in compliance with the listing rules and, in particular, listing
rule 3.1.
The Company is in compliance with Listing Rule 3.1.
As announced to the market on 13 February 2015 and again on 14 April 2015, the Isabel Nickel
Project civil appeal case is listed for a nine‐day hearing commencing on 26 May 2015. The appeal
hearing has now commenced.
The appeal hearing is continuing and the Company will inform the market of developments as the
hearing progresses and following completion of the hearing.
As announced to the market most recently on 10, 24 and 28 April and 25 May 2015, the Company
is also continuing to execute an exploration drill program at the Isabel Nickel Project and it is, so
far, consistently intersecting high grade nickel mineralisation. The Company will continue to
announce its drilling results as and when they become available.
Other than the matters set out above, the Company is not aware of any information concerning it
that has not been announced to the market, that if known by some in the market, could explain
the recent trading in its securities.
Yours sincerely
Ryan Mount
Chief Executive Officer
